Tulip Garden which has been in the news for some time after the owners has shown interest in en bloc sale, has finally grabbed a whopping S$906.889 million which is the second highest figure for collective sale in 2018.
The freehold site was picked up by a joint entity that includes MCL Land and Yanlord Land Group, the realty giant from China.
The sale price is 20.4% premium from the S$753 million reserve price set by the owner for this estate which currently measures 316,708 sq ft. The District 10 property which is located in close proximity of Good Class Bungalow Area and Holland Village has 162 residential units, two shop units and maisonettes.
As per the final deal the owners are expected to pocket S$4.3 million to S$7.6 million for their units which range in sizes between 1,701 sq ft and 3,412 sq ft.
The psf ppr price for this deal works out to be S$1,790 which is significantly higher than other estates which were sold recently in this area. Hollandia sold for S$1,703 psf ppr while The Wilshire and The Estoril sold for S$1,536 and S$1,654 psf ppr respectively.
Including Tulip Garden en bloc sale, this will be 11th freehold property sold in District 10 in 2017/18 and more will be sold.
This also add up a total of 21 freehold sites sold in Core Central Region.
At the close of trading hours on April 12, a representative for Yanlord told the Singapore Exchange that Tulip Garden with its 1.6 plot ratio can be redeveloped into approximately 670 residential units.
Colliers International the marketing agents for the sale said that the property falls in a zone where redevelopment is permissible for 12 storey structures. The developers won’t have to bear any additional development charges if they stick to the existing gross plot ratio.
Mainboard-listed Yanlord has formed a joint entity Asia Radiant with Hongkong Land Holdings’ Singapore unit MCL for this acquisition. With this acquisition Yanlord makes its debut in prime freehold residential market in Singapore.
In terms of collective sales figures for 2018 River Valley’s Pacific Mansion has bagged the highest price at S$980 million. The site was bought by GuocoLand a joint-entity which has Hong Realty and Intrepid Investments on board.
The owners of Tulip Garden who had taken the collective sale initiative can breathe a sigh of relief as it was their fourth attempt at collective sale.
Interestingly the property was sold to Bravo Building Construction led consortium way back in July 2007 but the group backed out after it had trouble raising the funds during the economic meltdown that followed the acquisition.
Tang Wei Leng who is the MD of Colliers International said that Tulip Garden’s successful sale and the fact that it grabbed a premium price over the reserve price is all due to its location.
She added that there have been many collective sales in this area in the recent months and lot of redevelopment projects are up and yet Tulip Garden holds advantage over others and hence fetched the price.
Yanlord’s representative said in a statement that this cost of acquisition and future redevelopment would come from its internal resources as well as borrowing from banks. The stock closed at S$1.75 on the exchange up by two cents but this was before the announcement was made.
Tulip Garden has been put up for collective sale as from Feb 28, with Colliers International serving as their marketing agent. Colliers, who disclosed the news on Feb 27, said owners of the freehold property along Farrer Road of District 10 have set the property reserve price at S$753 million.
The public tender closes on April 11, 2018.
With the renewed en bloc fever raging on, owners of the Tulip Garden condominium are optimistic their fourth attempt to sell their five blocks collectively.
This property that is located close to Holland Village, a leading lifestyle destination, comprises 160 residential units and two commercial units.
Luckily for the developer who wins the tender, the site has been zoned residential according to the 2014 Master Plan, which also allows it a gross plot ratio of 1.6 and a development height limit of 12 storeys.
The Tulip Garden freehold site is right where developers are looking – the Core Central Region (CCR), comprising Districts 9, 10 and 11.
Tulip Garden is also a freehold site and sits on a 316,708 sq ft expanse.
Also, the new developer has leeway to construct 670 housing units on the site if the average unit size is 790 sq ft, four times the number the site currently holds. Of course, fresh approval will need to be sought from relevant authorities.
According to Colliers, the land rate for Tulip Garden is still more attractive than those of CCR properties recently sold en bloc.
Based on the reserve price and a gross floor area (GFA) of 506,733, the rate is S$1,486 per sq ft per plot ratio (psf ppr), and even after factoring in possible development charges of S$26.6 million, the rate is still expected to drop because of the increased GFA, courtesy of the 10% balcony bonus area.
Effectively, therefore, the land rate is likely to be just S$1,399 psf ppr.
In comparison District 10 Top 5 sale, Hollandia, Toho Mansion, Crystal Tower, City Towers and Royalville had land rates of S$1,703, S$1,805, S$1,840, S$1,847 and S$1,960 per square foot per plot ratio respectively.
Tulip Garden asking price is the lowest among all. It is the most attractive price offer in District 10. Surely will caught the eyes of the developers and they don’t want to miss this great opportunity.
Collier’s MD, Ms Tang Wei Leng, highlights the advantage of the size of Tulip Garden. She says the new developer will have an opportunity to establish a unique retreat of high quality right within the heart of the city.
She also says the sales offer is a good opportunity for developers to strengthen their land banks, even as they reap from the recovered high-end market.
Tulip Garden Owners Likely to Reap Up To 6.3m
The units of the Tulip Garden condo range in size from 1,701 sq ft to 3,412 sq ft, and if the sale succeeds as anticipated, each owner could take home amounts between S$3.6m to S$6.3m.
According to the collective sales committee chairman, Mr. Ng Kee Wah, many of the property owners are eager to take advantage of the thriving en bloc sales wave, to monetize their units and enhance their value.
For any new launch property to be a success in terms of the developer selling the property to the right people at the right price within the right time, Location plays a major role.
Developer will love that Tulip Garden is located at Prime District 10 in Core Central Region where all important amenities and attractions are within reach.
Home buyers would love to live in a Central area while they can have ease of access to shopping, schools, work place, leisure activities etc.
The locality should be well connected so that people can save on travel time. This property is so well located that:
Farrer Road Mrt is only 8 mins walk from the condo
There is also a nearby Mrt station at Holland Village, one of the best shopping and dining destination. Many retail shops, good restaurants and banking services are found within
Dempsey Hill, another great dining destination is located close to the freehold property
Many Bus services provided just outside the condo
Empress Place food centre and the wet market is just located directly across the road
The famous Orchard Road is only few mins drive away
To relax during evenings and weekends, Singapore Botanic Gardens will be the choice. One of the best attractions near the freehold site
There are many Hospital that provided top class medical services in the area they are: Camden Medical Centre, National University Hospital, Alexandra Hospital and Gleneagles Hospital
Its takes only 10 mins drive to Central Business District and Marina Bay Sands, the most famous attraction in Singapore
One of the most important factors of choosing a good potential en bloc site for redevelopment will be nearby schools.
The developer has to consider the point of locating the property nearer to reputed schools as families would love to look at schools near to their dream home.
Property Investors also target new launch condo near these Top schools as they can earn rental income easily.
Some students who have flown from other countries to Singapore for their higher studies may want to rent out a Condo nearer to their schools.
This property satisfies every family in terms of proximity to renowned primary Schools, Secondary Schools and higher education institutions too.
There are many schools for children with special needs also in this area in close proximity to the property. In order to cater to the needs of the expats there are few international schools in this area.
Schools that can be found within the area – Queenstown Primary, New Town Primary, Nanyang Primary and CHIJ St. Theresa’s Convent
Other good education institutions which are short drive away – Melbourne Specialist international, Anglo-Chinese School International, Singapore Institute of Management and Hwa Chong Institution